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Pipeline conversion project to help reduce price spread

by Adam Wilmoth Published: February 15, 2013

I wrote in Friday’s paper about how new and expanded pipeline projects over the next two years are expected to move more oil to the Gulf Coast and alleviate the backlog at Cushing.

An article in the Calgary Herald on Friday explains how another pipeline conversion project could further help move oil more freely throughout the country.

Calgary-based Enbridge Inc. and Houston-based Energy Transfer Partners plan to spend up to $3.4 billion over the next two years to convert an existing natural gas pipeline to transport crude oil from Patoka, Ill., to the St. James hub in Louisiana.

When completed, the line is expected to transport 420,000 to 660,000 barrels of oil per day.

Oklahoma City-based Continental Resources Inc. and other producers in the Bakken Shale in North Dakota and Montana could be among the biggest beneficiaries from the proposed line.

Continental transports most of its Bakken crude by train to refineries on the east and west coasts.


by Adam Wilmoth
Energy Editor
Adam Wilmoth returned to The Oklahoman as energy editor in 2012 after working for four years in public relations. He previously spent seven years as a business reporter at The Oklahoman, including five years covering the state's energy sector....
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